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LP111960
Level 1
Mar 19, 2022 12:11 AM UTC
Question

Loyalty Card redemption

I reward my customers with punches on a loyalty card.  When the card is full they can redeem for $25.00 off a purchase.  Is the $25 tax deductible as a expense?

    1 reply

    PattiF
    Alumni - Intuit
    Mar 19, 2022 12:30 AM UTC

    Yes, the $25 is tax-deductible as a business expense. No more than a $25 expense can be deducted for each person during the year. See this IRS faq.

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